JP Morgan and Lessons Learned for Corporate Governance

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1 Response

  1. Isam Akrat says:

    Many thanks for this informative article, Michael. Indeed there were many lessons for JP Morgan to learn from its $6 Billion loss scandal. The question which poses itself is: how come that the Corporate Governance system of a leading regulated listed institution such as JP Morgan, with its standard internal controls over financial reporting and disclosure controls procedures and process, failed to detect trouble at the bank’s operations? Is it the case that listed entities and their corporate governance and compliance culture learn from errors only, or that the boards of directors of these institutions turn a blind eye so long as non-compliance produces results for the time being? If the report refers to controls design and effectiveness issues, should that lead to apportionment of accountability?
    I have been following reports on number of similar cases as JP Morgan’s, and marvel at the pattern of repeated mis-steps and wrong turns which these corporations have taken along the way.